Accounting Homework Elltol Company Ingrad Company Balance Sheet Balance Sheet Ja
ID: 2497516 • Letter: A
Question
Accounting Homework
Elltol Company Ingrad Company
Balance Sheet Balance Sheet
January 1, 2X13 January 1, 2X13
Cash $ 40 Cash $120
Net Fixed Assets 90 Net Fixed Assets 130
Total Assets $130 Total Assets $250
Accounts Payable $ 20 Accounts Payable $ 30
Long-term Bonds Payable 60 Long-term Bonds Payable 100
Stockholders' Equity 50 Stockholders' Equity 120
Total Liab. & Total Liab. &
Stockholders' Equity $130 Stockholders' Equity $250
On January 1, 2X13, Ingrad Company acquired 100% of the outstanding shares of Elltol Company for $50 in cash. During 2X13, Elltol Company had net income of $10, and Ingrad Company had net income of $25. All net income for both companies is in the form of additional cash.
Prepare the following:
A). The journal entry necessary for Ingrad Company on January 1, 2X13.
B). The journal entry necessary for Elltol Company on January 1, 2X13.
C.) The consolidated balance sheet immediately after the acquisition.
D). The one elimination entry necessary on December 31, 2X13, assuming none of the income for either company resulted from intercompany sales.
E). The consolidated balance sheet at December 31, 2X13.
Explanation / Answer
A). The journal entry necessary for Ingrad Company on January 1, 2X13.
B). The journal entry necessary for Elltol Company on January 1, 2X13.
C.) The consolidated balance sheet immediately after the acquisition.
Ingrad Company
Balancesheet
January 1, 2X13
Cash $110
Net Fixed Assets 220
Total Assets $330
Accounts Payable $ 50
Long-term Bonds Payable 160
Stockholders' Equity 120
Total Liab. &
Stockholders' Equity $330
D). The one elimination entry necessary on December 31, 2X13, assuming none of the income for either company resulted from intercompany sales.
E). The consolidated balance sheet at December 31, 2X13.
DATE PARTICULARS DEBIT($) CREDIT($) JAN 1,2X13 SHARES OF ELLTOL COMPANY A/C DR 50 TO CASH A/C 50 (BEING 100% SHARES OF ELLTOL COMPANY ACQUIRED)Related Questions
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